Medford Area Restaurant Sentenced for Stealing Over $759,000 in Federal Relief Funds

Medford, Oregon- A southern Oregon restaurant, Amigos Mexican Cuisine & Cantina LLC, was sentenced in federal court today for misappropriating more than $759,000 in federal funds intended to assist small businesses during the COVID-19 pandemic.

Amigos Mexican Cuisine & Cantina, previously located just outside of Medford, was ordered to pay a criminal fine of $200,000 and $759,100 in restitution to the U.S. Small Business Administration (SBA). Additionally, in a separate civil proceeding, the restaurant was directed to pay $1.6 million to resolve a related False Claims Act allegation.

Court documents revealed that over a 13-month period starting in April 2020, Amigos submitted five fraudulent loan applications, exploiting three pandemic relief programs: the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, and the Restaurant Revitalization Fund (RRF). The applications contained numerous false statements, including inaccurate financial information, claims that the owners did not have other business interests, and false attestations that the company was not involved in illegal activities. The company also falsely claimed on a loan forgiveness application that it had used the federal funds for payroll purposes. Instead, the funds were transferred to the personal bank accounts of the owners for various personal expenses.

On April 29, 2024, Amigos pleaded guilty to a one-count criminal information charge for stealing public money. The case was investigated by the SBA Office of Inspector General and the U.S. Postal Inspection Service. Meredith Bateman, Assistant U.S. Attorney for the District of Oregon, prosecuted the case, while Assistant U.S. Attorney Alexis Lien represented the United States in the False Claims Act proceeding against Amigos.